McMillan Shakespeare (ASX:MMS) Seems To Use Debt Quite Sensibly
Oct 26
Australian (ASX) Professional Services Industry Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies26
- 7D0.5%
- 3M-4.8%
- 1Y-3.2%
- YTD-8.7%
In the last week, the Professional Services industry is flat overall, with McMillan Shakespeare standing out by going down 3.1%. Unfortunately though, the industry is down 3.2% over the past 12 months. Earnings are forecast to grow by 11% annually.
Industry Valuation and Performance
Has the Australian Professional Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | AU$13.6b | AU$6.7b | AU$489.9m | 19x | 27.8x | 2x |
| Wed, 26 Oct 2022 | AU$13.5b | AU$6.5b | AU$416.5m | 20.9x | 32.4x | 2.1x |
| Fri, 23 Sep 2022 | AU$13.5b | AU$6.5b | AU$417.3m | 20.1x | 32.2x | 2.1x |
| Sun, 21 Aug 2022 | AU$14.7b | AU$5.9b | AU$319.2m | 31x | 46x | 2.5x |
| Tue, 19 Jul 2022 | AU$12.7b | AU$5.9b | AU$318.1m | 25.8x | 39.9x | 2.1x |
| Thu, 16 Jun 2022 | AU$12.4b | AU$5.9b | AU$317.9m | 26.1x | 39.1x | 2.1x |
| Sat, 14 May 2022 | AU$13.7b | AU$5.8b | AU$305.9m | 29.7x | 44.9x | 2.4x |
| Mon, 11 Apr 2022 | AU$14.5b | AU$5.8b | AU$306.3m | 32.9x | 47.5x | 2.5x |
| Wed, 09 Mar 2022 | AU$14.1b | AU$8.0b | AU$303.0m | 33.4x | 46.4x | 1.8x |
| Fri, 04 Feb 2022 | AU$11.1b | AU$4.6b | AU$350.7m | 21.5x | 31.5x | 2.4x |
| Sun, 02 Jan 2022 | AU$12.9b | AU$4.6b | AU$324.8m | 21.3x | 39.8x | 2.8x |
| Tue, 30 Nov 2021 | AU$12.2b | AU$4.6b | AU$324.2m | 20.3x | 37.6x | 2.7x |
| Thu, 28 Oct 2021 | AU$13.0b | AU$4.4b | AU$318.6m | 21x | 41x | 3x |
| Sat, 25 Sep 2021 | AU$11.9b | AU$4.4b | AU$344.1m | 20.3x | 34.6x | 2.7x |
| Mon, 23 Aug 2021 | AU$12.0b | AU$4.4b | AU$344.3m | 20.7x | 34.9x | 2.7x |
| Sat, 10 Jul 2021 | AU$11.9b | AU$4.3b | AU$341.2m | 22.6x | 34.8x | 2.7x |
| Fri, 02 Apr 2021 | AU$9.3b | AU$4.2b | AU$311.2m | 19.2x | 29.8x | 2.2x |
| Mon, 04 Jan 2021 | AU$9.2b | AU$4.1b | AU$236.9m | 16.1x | 38.9x | 2.2x |
| Thu, 08 Oct 2020 | AU$8.5b | AU$4.1b | AU$188.9m | 14.7x | 44.9x | 2.1x |
| Wed, 01 Jul 2020 | AU$7.2b | AU$4.1b | AU$201.5m | 16.5x | 35.8x | 1.8x |
| Sat, 04 Apr 2020 | AU$6.1b | AU$4.2b | AU$219.6m | 11.6x | 27.9x | 1.5x |
| Tue, 07 Jan 2020 | AU$9.3b | AU$4.2b | AU$250.9m | 16.4x | 37.2x | 2.2x |
Price to Earnings Ratio
35.2x
Current Industry PE
- Investors are pessimistic on the Australian Professional Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 27.8x which is lower than its 3-year average PE of 38.1x.
- The 3-year average PS ratio of 2.3x is higher than the industry's current PS ratio of 2.0x.
Past Earnings Growth
- The earnings for companies in the Professional Services industry have grown 22% per year over the last three years.
- Revenues for these companies have grown 18% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Australian Industrials industry?
| AU Market | 1.17% | |
| Industrials | 2.25% | |
| Professional Services | 0.53% | |
| HR Services | 1.21% | |
| Research and Consulting Services | 0.15% | |
Industry PE
- Investors are most optimistic about the Research and Consulting Services industry even though it's trading below its 3-year average PE ratio of 44.6x.
- Analysts are expecting annual earnings growth of 8.9%, which is higher than its past year's earnings growth of 3.5% per year.
- Investors are most pessimistic about the HR Services industry, which is trading below its 3-year average of 30.9x.
Forecasted Growth
- Analysts are most optimistic on the HR Services industry, expecting annual earnings growth of 15% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Research and Consulting Services industry is expected to see its earnings grow by 8.9% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| APM APM Human Services International | AU$2.99 | 2.4% +AU$64.2m | 6.8% | PE66.7x | |
| PPE Peoplein | AU$3.32 | 13.3% +AU$39.4m | -18.0% | PE19x | |
| IPH IPH | AU$9.01 | 1.0% +AU$20.3m | 2.0% | PE38.6x | |
| ALQ ALS | AU$12.18 | 0.08% +AU$4.8m | 1.6% | PE22.4x | |
| ASH Ashley Services Group | AU$0.69 | 3.8% +AU$3.6m | 17.9% | PE8.8x |